April 7th marks an important date for the crypto community. The latest SEC notification is here. The Securities Exchange had to say that regional crypto companies that hold virtual assets and platform licenses, like Ripple, might offer staking services too.
However, no random platform provider can do the same. They must ensure that the assets of the retail customers are safe there. Meanwhile, all platforms must disclose the investment risks, too.
What Does Staking Mean for the Customers?
You can now put stakes using your crypto holdings to win bigger. That’s easy. You have to simply lock in your holdings for a stipulated period. Meanwhile, you will be earning interest on your locked asset for that period.
How do platforms offer this feature to their customers? They use a proof of stake for the customer. After that, the customer has to give consent to the scheme. Once done your lock in period starts.
However, the service will be available in the Hong Kong product suite only. Meanwhile, the crypto tribe is waiting for the SFC to give the final signal before the start of operations.
What Did the SFC Say?
The SFC also said on Monday that they have modified their circular network to accommodate the scheme. However, there is another point that the exchange spokesperson clearly made.
To offer staking services, you have to partner with a licensed VATP only. Or else you may team up with authorized institutes to stake out the crypto assets.
What’s Hong Kong’s Focus
The CEO of the SFC, Julia, said that their crypto staking scheme will encourage the use of more crypto and volatile security products on the financial radar of the country. It’s a reasonable attempt to uplift the Asian crypto scene. Hong Kong is ready to take the leading role from here.
